Understanding Appropriate Human Resources for Effective Management

1. 5

2. Objectives 1. An overall understanding of how appropriate human resources can be provided for the organization 2. An appreciation for the relationship among recruitment efforts, an open position, sources of human resources, and the law 3. Insights into the selection process 4. An understanding of how the training process operates 5. A concept of what performance appraisals are .

3. Defining Appropriate Human Resources Appropriate Human Resources: Individuals within the organization who make a valuable contribution to management system goal attainment • Productivity - result→ Contribution • Inappropriate Human Resources: organization members who do not make a valuable contribution. (ineffective)

4. Defining Appropriate Human Resources • Productivity is determined by how human resources interact and combine to use all other management system resources. • Some factors that determine how appropriate the individual is for the organization: • Background • Age • Job-related experience • Level of formal education

5. Steps in Providing Human Resources Steps in Providing Appropriate Human Resources: • Recruitment • Selection • Training • Performance Appraisal

6. Steps in Providing Human Resources

7. Step 1: Recruitment • Recruitment: The initial attraction and screening of the supply of prospective (potential-future) human resources available to fill a position • Purpose: to narrow the large number of potential employees to a small group from which an employee will be hired • To be effective: • Knowing the job • Knowing sources of human resources • Knowing the Law

8. Step 1: Recruitment A. Knowing the Job: • A thorough understanding of the position to be filled • Job Analysis: a commonly used technique to understand the position to be filled, by using information gathering. It aimed at: • Job description: the activities a job entails • Job specification: the characteristics of the individual who should be hired for the job • Information gathering of What the workers do,How, & Why

9. Step 1: Recruitment

10. Step 1: Recruitment B. Knowing Sources of Human Resources: • The supply continually changing. Sometimes it’s much harder to find than other times. • 2 Ways: • Sources inside the organization • Sources Outside the Organization

11. Step 1: Recruitment B. Knowing Sources of Human Resources (cont.): • Sources inside the organization The pool of employees within the organization Advantages: • Building employee morale • Encouraging employees to work harder (why?) • Enticing (attracting) employees to stay with the organization (why?) Human resource inventory: Consists of information about the characteristics of organization members Focus: past performance & future potential Objective: to keep management up to date about the possibilities for filling a position from within.

12. Step 1: Recruitment B. Knowing Sources of Human Resources (cont.): Organizations keep 3 types of records for a useful human resource inventory (from Walter S. Wikstrom article): • Management Inventory Card • Position replacement Form • Management manpower replacement chart • Focused on managerial positions (can be modified for nonmanagerial) • Many org.s use computerized records (more efficient & effective) • Wikstrom’s human resource inventory system can serve as the foundation for succession planning in organizations (succession= coming after) • Succession Planning: is the process of outlining who will follow whom in various organizational positions (Advantages?)

13. Step 1: Recruitment • Management Inventory Card: contains an org history of a manager and an indication of how he might be used in the future (people-centered)

14. Step 1: Recruitment • Position replacement Form: focuses on position-centered information

15. Step 1: Recruitment • Management Manpower Replacement Chart: a composite view of individuals that the management considers significant for human resource planning.

16. Step 1: Recruitment B. Knowing Sources of Human Resources (cont.): • Sources outside the organization • Competitors (What are the advantages?) • Employment agencies (help people & org – can be public or private) • Readers of certain publications (most wideley used) • Educational institutions (e.g. schools) • Used when a position cannot be filled by someone currently employed by the organization

17. Step 1: Recruitment C. Knowing the Law • Legislation has a major impact on modern organizational recruitment practices • Managers need to be aware of the laws that govern recruitment efforts (the book has some examples) Affirmative Action (What is an Affirmative Action Program?) How? • How many minority & disadvantaged are employed • How many should be employed • Compare step 1 vs. 2 • Modern management writers recommend that managers follow the guidelines of affirmative action not only because they are (1) mandate by law, but also because of (2) the characteristics of today’s labor supply. • Diverse workforce → Diverse Organizations & work values

18. Step 2: Selection • Selection: Choosing an individual to hire from all those who have been recruited • It is dependent on the first step (dependent onrecruitment) • It is represented as a series of stages through which job applicants must pass. Each stage filters the applicants until only one employee is hired. • Tools used for selection: • Testing • Assessment centers

19. Step 2: Selection

20. Step 2: Selection [1] Testing: is examining human resources for qualities relevant to performing available jobs. Four Categories: • Aptitude tests: measure the potential of an individual to perform a task.… • Achievement tests: measure the level of skill or knowledge an individual possesses in a certain area. … • Vocational interest tests: measure an individual’s interest in performing various kinds of jobs. … • Personality tests: describe an individual’s personality dimensions in such areas as emotional maturity, subjectivity, honesty, & objectivity. … Testing Guidelines: • Valid & reliable (How?) • Should not be the sole (the only) determinant (Why?) • Nondiscriminatory (How?) • Should know it increases employee anxiety & worry

21. Step 2: Selection [2] Assessment Centers: a program (not a place) in which participants engage in a number of individual and group exercises constructed to simulate important activities at the organizational levels to which they aspire These exercises can include such activities as: • Participating in leadership discussions • Giving oral presentations • Leading a group in solving some assigned problem The observer then evaluate their ability and potential in e.g. oral communication • Conflict resolution • Leadership • Persuasion • Problem-solving • Assessment Center is used not only in selection, but also in training & development

22. Step 3: Training • Training:is the process of developing qualities in human resources that will enable them to be more productive and thus contribute more to organizational goal attainment • Purpose: increase employees productivity by influencing (changing) their behavior • Training’s Four-Steps Process: • Determining training needs • Designing the training program • Administering the training program • Evaluating the training program

23. Step 3: Training

24. Step 3: Training

25. Step 3: Training [1] Determining Training Needs • Training needs:the information or skill areas of an individual or group that require further development to increase the productivity • Training is a continuing activity. Even not new employees, and who already have some initial orientation and skills training, need continued training to improve their skills. • Methods to determine needed skills: • Evaluate the production process • Get direct feedback from employees (why?) • Forecast (predict-look into) the future

26. Step 3: Training [2] Designing the Training Program • Assembling various types of facts & activities that will meet the established training needs

27. Step 3: Training [3] Administrating the Training Program • Actually training the individuals selected to participate in the program Techniques for Transmitting Information: • Lectures • Programed Learning • Lectures: a one-way communication situation in which the instructor orally presents information to a group of listeners • Most widely used technique. • The instructor does most of the talking. Trainees listen and take notes • Advantages: maximum amount of info within a given time period • Disadvantages: (1)one-way, passive listeners, little or no opportunity to clarify meanings, (2) little or no practice, reinforcement, knowledge of results, or overlearning (3) limitations on lecturer’s actual content

28. Step 3: Training • Programmed Learning: a technique for instructing without the presence or intervention of human instructor • Small parts of information require related responses are presented to trainees. Then they check their answers. • Types of responses: multiple-choices, true-false, or fill in the blanks • Technology → new forms of programmed learning • Advantages: (1) computerized, (2) learn at their own pace, (3) know immediately if right or wrong, (4) participate actively • Disadvantages: no one is present to answer a confused learner’s question Techniques for Developing Skills: • On-the-Job Training • Classroom

29. Step 3: Training • On-the-Job Training: techniques for developing skills on the job. A blend of job-related knowledge & experience. • Include: • Coaching: direct critiquing of how well an individual is performing a job • Position rotation: moving an individual from job to job to enable the person to gain an understanding of the organization as a whole • Special project committees: a vehicles for assigning a particular task to an individual to furnish him or her with experience in a designated area • Classroom: a blend of job-related knowledge and experience. • Techniques for technical & interpersonal skills • Include: • Management games: small group of trainees make and then evaluate various management decisions • Role-playing format: acting out and then reflecting on some people-orientated problem that must be solved in the organization • Advantages: (1) encourage discussion & interaction, (2) climate to learn new behavior (3) clarifies information, (4) eliciting job-related knowledge & experience

30. Step 3: Training [4] Evaluating the Training Program • Evaluate its effectiveness • Because a training programs is an investment [cost include (1)materials, (2)trainer time, (3)production loss], a reasonable return is essential (is important) • Why management should evaluate the training program? • To determine whether it meets the needs for which it was designed • Some questions to help determine training program effectiveness: • Has the excessive reject of products declined? • Are deadlines being met more regularly? • Are labor costs per unit produced decreasing? • If yes → successful • If no → need significant modification

31. Step 4: Performance Appraisal • Performance Appraisal ( = Performance evaluation = Performance Review):is the process of reviewing individuals’ past productive activity, to evaluate the contribution they have made toward attaining management system objectives. • It is a continuity activity, that focuses on both existing and new members. • Main purpose: to give feedback to organization members about how they can become more productive and useful to the organization in its quest for quality.

32. Step 4: Performance Appraisal

33. Step 4: Performance Appraisal Why Use Performance Appraisal? (3 reasons) • Systematic judgement to support salary increases, promotions, demotions, transfers, or termination • Telling subordinates how they are doing and of suggesting needed changes in behavior, attitudes, skills, or job knowledge. They let subordinates know where they stand with the boss • A useful basis for the coaching and counseling Handling Performance Appraisals (4 Guidelines) • If not handled well → ↓benefits • Stress performance in the position and the success in attaining organizational objectives (performance & objective are inseparable) • Emphasize how well the individual is doing the job not the evaluator’s impression (objective not subjective analysis) • Be acceptable to both evaluator & employee (agree on the benefits for org & worker) • Provide a base for improving individual’s productivity in the org

34. Step 4: Performance Appraisal Potential Weaknesses of Performance Appraisals (5 weaknesses to avoid) • Focuses employees on short-term rewards • Viewed as a reward-punishment situation • Emphasizes completing paperwork rather than critiquing individual performance • Process viewed as unfair or biased • Negative reactions to unfavorable comments To avoid: • Look at it as an opportunity to increase the worth of the employee through constructive feedback • Not as a mean of rewarding or punishment • Through positive or negative comments • Paperwork should be viewed only as an aid in providing this feedback not as an end itself • Make feedback tactical & objective as possible to minimize negative reaction